How To Get Help Paying Your Utility Bills

If you can’t pay your utility bills, you’re in a vulnerable and scary position. Fortunately, there are agencies that can help you cover the costs whether you’re already behind in your payments or you don’t think you can make your next one.

Learn what happens when you can’t pay your utility bills and which organizations can provide financial assistance.

What if You Can’t Pay Your Utility Bills?

Service providers generally won’t disconnect your services the moment you miss a payment, so you can breathe easier if you’ve missed a payment by just a day or two. However, it’s important to act quickly. 

Missed payments can have a domino effect, making it more difficult to get caught up, and even impacting other parts of your finances. You may pay a late fee or even your provider may disconnect your services after missing a payment. Some companies may charge a reconnection fee to re-establish services.

Another important concern is your credit score. While energy companies don’t regularly report utility bills to the credit bureaus, unpaid utility bills can affect your credit score. Your provider may send your overdue balance to a collection agency, which may send your past-due account information to the credit bureaus.

Having accounts in collection can affect your credit score and your ability to get approved for credit-related products and services. You may even have to pay a security deposit when you start services with a new company.

You may be under a moratorium from service disconnections depending on your state and the time of year. Under the moratorium, service providers may not be allowed to disconnect services in extreme weather situations, for low-income residents, or for residents who have applied for government emergency assistance.

If you are on life support or have other medical needs that require utility services, your utility company may be prohibited from disconnecting services, provided you have notified your provider. Check with your state utilities commission to become familiar with the regulations and protections in your area.

Options for Relief  

There are a few places you can seek help with paying your utility bills. Your service provider is the best place to start. Reach out to customer service to explain your situation and ask about the options available to you. Your provider may allow you to request an extension, pay your bill in installments, or connect you to a partner organization that can help.

Depending on your income, you may be able to get assistance through the following federal and local programs and organizations.

Low-Income Home Energy Assistance Program (LIHEAP)

LIHEAP is a federally funded program administered through the Department of Health and Human Services that assists with home energy bills and other energy-related issues like crises and weatherization. 

Assistance is available to low-income households with a child, disabled member, or senior. To qualify (in most cases), your total household income for the previous month must be at or below 150% of the federal poverty level: